Latest
Recommended
Published: Tue, May 08, 2018
Culture | By Antonia Gonzales

Air France-KLM to decide on management after CEO departs

Air France-KLM to decide on management after CEO departs

He will meet the Air France-KLM and Air France boards May 9 to submit his resignation, Air France said in a statement, adding that it would be their responsibility to take the appropriate measures to ensure the continuity of the group and Air France during the transition period, with Air France management, and its CEO Franck Terner, overseeing the day-to-day operations of the company. A report showed that 55 per cent of responders rejected the offer for a 2pc pay rise this year.

"Air France will disappear if it does not make the necessary efforts to be competitive", he warned, ruling out any government intervention to purge the company's debts.

He said he hoped his departure would spark "a more acute collective awareness" before leaving without taking questions.

Janaillac was named chief executive in 2016 with a mandate to ease tensions after years of strikes and labour disputes - including a notorious 2015 incident when two executives had their shirts torn off while escaping workers protesting plans to cut almost 3,000 jobs.

He had been trying to cut costs at the company, amid rising competition from low-priced airlines and Gulf national carriers.

The crisis at Air France has coincided with other strike action in the country as rail workers also press on with walk-outs to protest against President Emmanuel Macron's planned overhaul of the state-run train operator SNCF. Air France-KLM had a positive return on equity of 38.04% and a negative net margin of 1.13%. analysts forecast that Air France-KLM will post 2.71 EPS for the current fiscal year. Air France-KLM has an average rating of "Hold" and an average target price of $18.00. They transport tens of millions of passengers around the world every year.

British Airways and Lufthansa have already undergone deep cost-cutting in recent years, and some analysts say Air France has lagged behind.

"I call on everyone to be responsible: crew, ground staff, and pilots who are asking for unjustified pay hikes", Economy Minister Bruno Le Maire told the BFM news channel on Sunday.

"That has been proved in the cases of the turnarounds achieved by Iberia and British Airways".

Like this: